VA Loan Benefits For Veteran’s Spouse
VA Loan Programs are probably the best mortgage loan program available, however, VA Loans are only limited for members of the United States Armed Services and who have a Certificate of Eligibility by the Department of Veteran Affairs. VA Loans offer 100% financing and have the lowest mortgage rates with no private mortgage insurance required than any other residential mortgage loan programs which includes FHA, USDA, and conforming conventional loans. Many service members who have a VA Certificate Of Eligibility do not realize that their civilian spouse are eligible for VA Loan Benefits and that they can add their civilian spouse to qualify for their VA Loan.
Using Civilian Spouse To Qualify For VA Loan Benefits
Many times, a service member who has a VA Certificate Of Eligibility is married to a civilian spouse. Often times, service members whith a VA Certificate Of Eligibility assume that the civilian spouse’s income cannot be used to qualify for their VA Loan. This is absolutely not the case. If you are a veteran with a VA Certificate Of Eligibility, your civilian spouse’s income can be used to qualify for your VA Loan. If you have a civilian spouse with substantial documented income, you can qualify for a substantial VA Loan amount.
How Does Adding Veteran’s Spouse As Co-Borrower Work For VA Loan Benefits?
The United States Department of Veteran Affairs permits civilians spouses of eligible VA Loan borrowers to be added to the VA Loan as co-borrowers. You can use the income of the spouse of the service member as long as the spouse qualifies with credit. As with other mortgage loan program, the lower of the two middle scores of the borrower’s are used to qualify for credit. For example, if the veteran has the following credit scores of 750 FICO Transunion, 723 FICO Experian, and 700 FICO Equifax, the 723 FICO is the veteran’s middle score. If the civilian spouse has 700 FICO Transunion, 600 FICO Experian, and 500 FICO Equifax, the 600 FICO credit score will be used to qualify this VA Loan since the civilian spouse has the lower of the two borrower’s credit scores.
Eligibility Requirements On Surviving Spouse Of Veteran
Surviving spouses of veterans now have VA Loan benefits and can qualify for VA Loans. Here is the guidelines on eligibility requirements on VA Loan benefits.
- Non-remarried surviving spouses of service members who has deceased in the line of service and/or military service related disability is eligible for VA Loan benefits.
- Spouses of military veterans who the service members were MIA, missing in action for at last the past 90 days are eligible for Department of Veteran Affairs benefits for VA Loans.
- Any surviving spouse of a service member of the United States military who is classified as a disabled veteran and eligible for disability benefits at the time of death from any causes of death is eligibible for Department of Veteran Affairs benefits.
Divorce From A Service Member
Divorce members of veterans are not classified the same way as spouses of surviving members of the military. Situations where there is a divorce after the service member and the civilian wife has a VA Loan together can become very hairy because the Department of Veteran Affairs does have strict rules and regulations on who can live on the house that was purchased with the VA Loan. If the VA Loan had the civilian spouse as a co-signer, the civilian spouse can live in the home and the service member can exit the property. There will be an issue when the service member decides to get another VA Loan which is the VA entitlement. The service member will not be able to restore their VA Loan entitlement unless the civilian spouse sells the home and pays off the VA Loan in full, pays off the VA Loan in full, or refinances the VA Loan to another type of loan program.
VA Loan Lender With No Overlays
If you are a veteran and need to get qualified for a VA Loan, contact Gustan Cho Associates at 261-716-8151. We are VA mortgage lenders with no lender overlays and specialize helping VA Loan Borrowers with bad credit, high debt to income issues, and VA loan borrowers who were denied by other VA mortgage lenders.